Refer to the extracts of the annual report of Woolworths Limited in the appendix. All questions relate to the consolidated accounts.

1 What would be the most likely source document used by Woolworths Limited to record:

a a sale?

b a purchase of goods for sale?

c a payment to suppliers?

d a payment of wages?

e interest expense?

2 Is there any indication of the following in the accounts:

a prepayments?

b unearned revenue?

c accrued expenses?
d accrued revenues?
3 What is the net book value for:
a freehold land, warehouses, retail and other properties?
b plant and equipment?
4 Give examples from Woolworths’ financial statements to indicate that it uses accrual accounting.
5 What is the depreciation for the year on plant and equipment and what is the balance of accumulated depreciation at year-end for plant and equipment?